════════════════════╦═══════╤══╦════════════════════╤═══════╤══ To Purchases ║$10,000│00║By shipments │ $9,000│00 ║ │ ║ │ │ Profit on Sales ║ 465│00║ " Inventory │ 1,465│00 ────────────────────╫───────┼──╫────────────────────┼───────┼── ║$10,465│00║ │ │ ════════════════════╬═══════╪══╬════════════════════╪═══════╪══ ║ │ ║ By Profit on Sales│ $465│00
=47.= The following transactions, taken from the books of John Doe, shipper of poultry and butter and eggs, illustrate the books and accounts used.
Commenced business with a cash investment of $1,000.00
Bought for cash 200# chickens @ .11½ 23.00 100# ducks @ .13 13.00
Bought from Henry Meyers 400# turkeys @ .16 64.00
Shipped to Richard Roe, to be sold on my a/c 220# chickens @ .11½ 25.30 98# ducks @ .13 12.74
Bought for cash 100 cs. eggs, 3,000 doz. @ .16 480.00
Shipped to Richard Roe to be sold on my _a/c_ 95 cs. eggs, 2,850 doz. @ .16 456.00
Sold to Johnson & Sons on _a/c_ 5 cases eggs, 150 doz. @ .20 30.00
Shipped to Richard Roe to be sold on my a/c 200# turkeys @ .16 $32.00
Received from Richard Roe Account Sales for Shipment No. 1 Net proceeds remitted in cash 47.73
Received from Richard Roe Account sales for shipment No. 2 Net proceeds retained by him 518.12
THE ADMINISTRATION BUILDING OF THE MINNEAPOLIS STEEL & MACHINERY CO., MINNEAPOLIS, MINN. ]
=48.= On a certain date a trial balance of the ledger of Henry Donnely, shipper of produce, stood as follows:
Purchases of apples $1,264.00 Purchases of potatoes 1,500.00 Shipment Ledger Account 736.00 Cash 450.00
Shipment Account—apples 1,200.00 Shipment Account—potatoes 1,200.00 Profit on Shipments—apples 250.00 Profit on Shipments—potatoes 350.00 Accounts Payable 950.00
During a subsequent period, his transactions were as follows:
Cash purchases of apples 1,000.00 Cash purchases of potatoes 1,000.00 Shipments of apples 900.00 Shipments of potatoes 1,100.00 Profits on apples 100.00 Profits on potatoes 200.00 Account Sales for which cash was received 1,800.00 Account sales charged to Agts. 600.00 Shipment Ledger Account decreased 100.00 Sundry expenses paid in cash 50.00
Inventory at end of period Apples 210.00 Potatoes 190.00 400.00
Prepare trading and profit and loss accounts showing net profits or losses on both apples and potatoes for the entire period represented by the accounts.